The Laughing Heir, Or Why You Need A Will

The movie or TV script is common – a character (known as a “laughing heir”) inherits a life-changing amount of money from a distant relative; someone tries to block the transaction and engages in behind-the-scenes maneuvering; and, ultimately, everyone learns a valuable lesson. If you saw Adam Sandler in Mr. Deeds, you’ll get the plot. This lovable protagonist inherits a billion dollars from a distant uncle and moves from small-town America, where he runs a pizza restaurant, to New York City, where he takes over his uncle’s business. The storyline appears pretty far-fetched. Could any of this actually happen?

What if you got a letter saying that your father’s great-uncle’s cousin in Norway died, and you are the dead man’s only living relative? Would you legally be entitled to the estate? In many cases, yes, if you fall within the statutory line of intestate succession, no matter how removed from him you are. This particular scenario sheds more light on the term “laughing heir.” You likely wouldn’t feel any sense of loss or pain. In all probability, the person who died is a complete stranger whose existence was completely unknown to you before the letter saying you’re going to inherit his million-dollar estate. You’d probably laugh with glee, too, wouldn’t you? 

The “laughing heir” reference is to a situation that allows distant relatives to inherit in cases of intestate succession. Intestate succession simply means that a person died without a valid will.  Most jurisdictions do not cut off the rights of distant relatives, but extend the search for heirs indefinitely until a relation is found. If no relative is found within the limitation set by the statute, then the property escheats to the state. This means that the state takes ownership of the property and assets.

Intestate Succession In New York State

In New York, if the decedent had no will, then the heirs are determined by New York State law. This is the statutory intestate distribution scheme:

• If the decedent is survived by a spouse and no issue (i.e., lineal descendants such as children and grandchildren), then the entire estate passes to the spouse.
• If the decedent is survived by issue but no spouse, the issue will split the estate evenly.
• If the decedent is survived by both a spouse and issue, the spouse gets the first $50,000.00. Then, the spouse gets half of whatever is remaining and the decedent’s issue split the other half equally.
• If the decedent is survived by no spouse and no issue, then the entire estate goes to the decedent’s parents equally. If only one parent survives the decedent, then the entire estate would go to the surviving parent of the decedent.
• If the decedent is not survived by a spouse, issue, or parents, then the estate goes to the decedent’s siblings and children of predeceased siblings (nieces/nephews) in equal shares.
• If the decedent is not survived by a spouse, issue, parents, siblings, or children of predeceased siblings, then the estate goes to the decedent’s grandparents, with half going to the maternal grandparents and the other half going to the paternal grandparents. 
• If the decedent is not survived by any of the above, then the estate goes to the great-grandchildren of the decedent’s grandparents (first cousins once removed), half to the maternal side and half to the paternal side.  

As you can see, at these last stages in the line of intestate succession, the inheritors would be very far removed from the deceased, and you can easily see how they might be considered “laughing heirs.” 

Does the intestate succession stop here? There’s little case law precedent, as an heir can be found in the vast majority of cases in New York and other states. However, according to one scholarly New York legal commentary, McKinney’s Consolidated Laws of New York, Practice Commentaries to Estates, Powers and Trusts Law § 4-1.1, first cousins twice removed would probably be too far to take anything. At this point, the estate would likely escheat to the State of New York. 

The Importance Of A Will

Do you really want your estate to go to these far-removed relatives? If not, it’s a straightforward matter to create a valid will meeting all state legal requirements that ensures your estate goes to people or places of your choosing –  your best friend, your dog walker, your church, or your favorite museum. A Long Island will attorney can get your estate plan set up quickly, so you don’t need to worry about someone you don’t know jumping for joy when they receive a letter that you’re dead and they’re inheriting your hard-earned money.

There are many other reasons to have a will. In addition to not having the state dictate the order of succession of your assets, a will allows you to name a guardian for your minor children, ensuring their well-being after you die; name a trusted executor to manage your estate and ensure your wishes are carried out; and provide instructions for your funeral and burial. Having a will reduces stress and confusion, helps avoid family disputes, optimizes tax planning, and streamlines the probate process. 

In New York, a will must meet the following formalities to be valid:

• It must be in writing (some states recognize an oral will, but New York does not);
• The maker of the will must have testamentary intent and capacity, meaning he or she is at least 18 years old, of sound mind, and acting without duress or coercion;
• The testator must sign, or have someone sign at his or her direction, and
• The will must be witnessed by two competent witnesses.

A Long Island will attorney can work with you to ensure that all these legal requirements are met. 

Contact Davidow, Davidow Siegel & Stern, LLP

If you don’t yet have a valid will with instructions on how you want your assets distributed, you might have an unknown heir laughing when you die. The lesson here? Have a will. At Davidow, Davidow, Siegel & Stern, we’ve been helping people with their estate plans, trusts, probate, and estate administration, and similar matters for over 100 years. We’re experienced and deeply dedicated to our clients. Call us, contact us online, or use the live chat function to schedule a consultation today.